Investors who take an interest in JiaXing Gas Group Co., Ltd. (HKG:9908) should definitely note that the Chairman & CEO, Lianqing Sun, recently paid HK$7.53 per share to buy HK$3.2m worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 33%.

JiaXing Gas Group Insider Transactions Over The Last Year

Notably, that recent purchase by Chairman & CEO Lianqing Sun was not the only time they bought JiaXing Gas Group shares this year. They previously made an even bigger purchase of HK$10m worth of shares at a price of HK$7.59 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$7.60. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for JiaXing Gas Group share holders is that an insider was buying at near the current price. Lianqing Sun was the only individual insider to buy shares in the last twelve months.

Lianqing Sun purchased 1.75m shares over the year. The average price per share was HK$7.58. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of JiaXing Gas Group

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. JiaXing Gas Group insiders own about HK$392m worth of shares. That equates to 37% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The JiaXing Gas Group Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about JiaXing Gas Group. Looks promising! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for JiaXing Gas Group (1 can't be ignored!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.